How can I buy property with bad credit and no money? - Posted by Wanda

Posted by Crissie C. Luckey, J.D. on February 22, 2000 at 21:23:09:

Yes, I used the company recently myself. I searched and searched for weeks through mortgage brokers locally and from the web, and none of them got any results.

Luckily, I FINALLY found Full Spectrum through a Yahoo web search. I called and talked to a consultant that same night and explained my problem re: student loan judgments, etc., and he pulled my credit. He had underwriting take a look at it, and I was able to get a 70% LTV loan on a cash-out refi of a house I had inherited free and clear. (I needed the $ to buy out my co-heir). Yes, the interest rates and fees were high (I paid 15.5 points (that’s right, FIFTEEN AND A HALF discount points) to buy the rate down from 17.375% (yes, SEVENTEEN PERCENT INTEREST) to 9.625%)), but I did get the loan.

They also have a separate division for investment property purchases. They will make loans on non owner-occupied properties from 55%-90% LTV, depending upon credit.

From what I understand, they require 10% down minimum for NOO property. It may be more depending upon credit. However, the down payment issue can be overcome by proper structuring of the deal with seller-granted credits which would allow you to recoup most or all of your DP at closing.

Hope this helps. Good luck.


How can I buy property with bad credit and no money? - Posted by Wanda

Posted by Wanda on February 15, 2000 at 22:38:59:

I have over $56,000 in financial aid loans on my credit and have no money to put towards a down payment.

I feel that under these cicumstances, I am very limited as to number of no money down/bad credit techniques I can use.

Any suggestions or ideas?

Re: How can I buy property with bad credit and no money? - Posted by Crissie C. Luckey, J.D.

Posted by Crissie C. Luckey, J.D. on February 19, 2000 at 23:38:55:


I was/am in the IDENTICAL predicament you are. I had about $108k in bad student loan judgments, etc., and thought it would be impossible to obtain a mortgage.
After several frustrating weeks of working with mortgage brokers, I searched the web and finally located Full Spectrum Lending, Inc. - a subsidiary of Countrywide Mortgages - the largest mortgage lender in the nation.

They worked a MIRACLE for me. Visit them at or call them at 800-257-1603. See what they can do for you!

I’d also strongly urge you to address the ROOT of your credit problems with the student loans. The Dept. of Education has an excellent consolidation program available through the William D. Ford Direct Consolidation Loans. Under this program, it doesn’t matter if your loans are in default or how much you owe. They will set you up on a consolidation program in which your monthly mpayments are based on your income - no matter how much you owe.

Once the loans are consolidated this way, your credit file will show the delinquent loans with zero balances and the new consolidation loan will reflect your prompt payments. Even if you have NO income, you can still consolidate this way, because they will allow monthly payments of $0.00 (yes, ZERO dollars and ZERO cents). After up to 25 years of timely payments (even if the “payments” are $0.00), any unpaid principal balance is forgiven!

So, act NOW to take charge of your situation. Don’t let credit obstacles stand in your way. Don’t make the mistake of “waiting until my credit is clear” before you invest. The time you spend “waiting” is time lost in which you can become RICH!

Best of luck and very highest regards,


Re: How can I buy property with bad credit and no money? - Posted by D. Bell

Posted by D. Bell on February 18, 2000 at 17:25:51:

I’m right there with you, want to own a SMALL home very bad credit 0$ need help…frustrated

I am in that boat with you! - Posted by Ray S(FL)

Posted by Ray S(FL) on February 16, 2000 at 23:11:44:


I started out last year in that exact finacial situation. I bought and sold 10 properties last year. Nothing super dynamic but, it was 10 more that most people. Didn’t have money so, obviously I had to buy properties or do deals that required no money. My credit stinks to this day. I have a three year dispute with a phone co. from a previous marriage that messes me up every time I try to borrow money the old fashioned way.

The only thing that you must have is the “want to”. If you read enough and study enough you will uncover ways to buy and invest with out using your money or credit. Hang out here and buy some courses as you go. Read everything you can get your hands on about real estate.

It is possible. Good luck to you.

Ray S(Fl)

Try: Nothing $Down$! - Posted by SusanL.–FL

Posted by SusanL.–FL on February 16, 2000 at 07:48:00:

Read: Robert Allen’s: Nothing Down in the 80’s or
Nothing Down in the 90’s (I like the ‘80’s’ better).

Has some good information.

Husband, Kenny, used to scoff at me when I’d talk about ‘nothing down’ deals. I’d hear, “people want cash; they don’t want to walk away from the table with zip in their pockets”. Yes, many do…I’ll grant you that.

HOWEVER! There are also many out there that would rather be out from under the psychological “weight” of that debt hanging over their head and will say ‘yes’ to your offer.

The first time I offered ‘zero down’ on a deal, the seller went for it! Shocked the heck outta my husband! And me too, actually (pleasantly surprised!!)

In the meantime, read all you can on this site (message board/success stories/articles) and continue to ask questions.

Good luck!

Buy property with bad credit and no money? - Posted by Rolfe Mpls/StPaul

Posted by Rolfe Mpls/StPaul on February 16, 2000 at 01:28:49:


It is acheivable.

I’m fairly certain there folks on this site who have achieved the very goal you’ve set, while under similar circumstances. It does take money to buy real estate. But who’s money?

No doubt, your financial status will present a challenge. If you have a steady income and are looking for a home for yourself, call some mortgage brokers. You may be surprised!

Find a seller who is motivated to sell, and who is willing to provide a seller carry back or a Contract for Deed.

In a carry back, you’d need to get a mortgage for a substantial portion of the purchase price, say 75%. The seller would then take monthly payments in lieu of cash for the remaining amount.

If the seller will offer a Contract for Deed (often financing 80% to 90% of the selling price) then all you need is the down payment. That can be tough, but be creative. Perhaps a loan from family, or a cash advance friom a credit card could be used.

USE CAUTION IF YOU USE A CREDIT CARD FOR YOU DOWN PAYMENT! If property values are increasing in your area, within 12 to 24 months you may have accrued enough equity to refinance, paying off your initial down payment.

Hang out at this site awhile. Read the posts, read the articles, buy a book or two. It may take a year, but you’ll make it happen if your heart is into it. Remember, find the motivated seller.

Good Luck! Write back if I have not been clear.


Re: How can I buy property with bad credit and no money? - Posted by George

Posted by George on February 22, 2000 at 18:21:36:

Hello Crissie,

My name is George. I was scanning the message board and read the discussion you all had on bad credit and buyin real estate. I am in that situation. I want to buy real estate but don’t have a lot of money and I’m buried under school loans (none are in default).

I was reading about the consolidation program you wrote about. Is this really true? Can anyone do this? Do they really allow payments of $0.00? I find this amazing.

Love to hear from you.

George in Cleveland.

GOOD post! - Posted by SusanL.–FL

Posted by SusanL.–FL on February 22, 2000 at 07:52:35:

See! There IS hope for just any ANY situation----if people would only take the time to look for it.


Re: How can I buy property with bad credit and no money? - Posted by Chris

Posted by Chris on February 20, 2000 at 24:24:54: is a communications solution company.

One thing I have read in books – again and again … - Posted by SusanL.–FL

Posted by SusanL.–FL on February 17, 2000 at 10:31:58:

Hi Ray!

…even if you DO come into some $money$, continue to work your deals as though you don’t. Your money will stretch a lot further and you will be able to do more deals. You’ll also find that you’ll have to use your brain more to discover other creative ways to do the deals (using other people’s money).

Re: Try: Nothing $Down$! - Posted by Rob FL

Posted by Rob FL on February 17, 2000 at 15:42:05:

Another thing that people fail to realize is that “Nothing down” is not the same as “The seller gets no money at closing.” This is a common misconception.

I have done rehabs where the hard money lender loans you the whole purchase price plus repairs. How much money did I put down? Answer = nothing. How much did the seller get at closing? Answer = They got their purchase price in cash.

Another instance. I bought a SFR with 90% seller financing and 10% down. Since the 10% down was only about $5,000 I simply used a credit card. Bingo. No money down again, but the seller got $5,000. The property has about $100 a month positive cash flow.

Re: How can I buy property with bad credit and no money? - Posted by Crissie

Posted by Crissie on February 22, 2000 at 21:11:07:


It’s true. You make payments on the consolidation loan according to your income. If your income is zero, your payments are likewise zero.

Call the toll-free number referred to in my previous post if you don’t believe it.


Re: How can I buy property with bad credit and no money? - Posted by Crissie C. Luckey, J.D.

Posted by Crissie C. Luckey, J.D. on February 20, 2000 at 01:50:22:


I goofed. The correct URL for Full Spectrum mortgage lending is:

Or: call them at 800-257-1603.

Sorry for the mistake.


Re: One thing I have read in books – again and again … - Posted by Ray S (FL)

Posted by Ray S (FL) on February 17, 2000 at 12:16:13:


I have heard that advice ever since I bought my first course. However, I didn’t follow it until I actually put money into properties and then realized why every one says “don’t put your own money in the property”. Even though I read it, heard it, had it pounded into me, experience was the ultimate best teacher.

I have two purchases this week that require about 8k out of my pocket. Where is the money coming from? Credit Cards.

Cash in the bank can be devestating for your creative juices!

Where are you in FL?

Ray S(FL)

Re: How can I buy property with bad credit and no money? - Posted by Nicolas

Posted by Nicolas on February 20, 2000 at 03:15:13:

have you used this company before. what do you know about them. are they good for people with bad credit.